Correlation Between Cref Inflation and Voya Index
Can any of the company-specific risk be diversified away by investing in both Cref Inflation and Voya Index at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cref Inflation and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Inflation Linked Bond and Voya Index Solution, you can compare the effects of market volatilities on Cref Inflation and Voya Index and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cref Inflation with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation and Voya Index.
Diversification Opportunities for Cref Inflation and Voya Index
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cref and Voya is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond and Voya Index Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Solution and Cref Inflation is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cref Inflation Linked Bond are associated (or correlated) with Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Solution has no effect on the direction of Cref Inflation i.e., Cref Inflation and Voya Index go up and down completely randomly.
Pair Corralation between Cref Inflation and Voya Index
Assuming the 90 days trading horizon Cref Inflation is expected to generate 2.58 times less return on investment than Voya Index. But when comparing it to its historical volatility, Cref Inflation Linked Bond is 4.27 times less risky than Voya Index. It trades about 0.22 of its potential returns per unit of risk. Voya Index Solution is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,738 in Voya Index Solution on July 23, 2025 and sell it today you would earn a total of 96.00 from holding Voya Index Solution or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Inflation Linked Bond vs. Voya Index Solution
Performance |
| Timeline |
| Cref Inflation Linked |
| Voya Index Solution |
Cref Inflation and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Inflation and Voya Index
The main advantage of trading using opposite Cref Inflation and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Inflation position performs unexpectedly, Voya Index can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Voya Index will offset losses from the drop in Voya Index's long position.| Cref Inflation vs. Transamerica Funds | Cref Inflation vs. Shelton Emerging Markets | Cref Inflation vs. Franklin Emerging Market | Cref Inflation vs. Ep Emerging Markets |
| Voya Index vs. Eventide Healthcare Life | Voya Index vs. Alphacentric Lifesci Healthcare | Voya Index vs. Hartford Healthcare Hls | Voya Index vs. Tekla Healthcare Investors |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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